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Monday, Sep. 24, 2007 at 10:52 am

Netflix Reads Grok, Blockbuster Misses Opportunity

By Ronald Patiro
September 24th, 2007

To follow up on my last post about Netflix — and its probable loss of conversion on its homepage — we’d like to congratulate them on taking action on our advice. It seems they’ve implemented my first recommendation. Well, almost. Instead of changing the “coupon box” to a search box, they removed it entirely. I’m not sure if they’re testing, getting rid of coupon codes, or if they plan on putting in a search box in a follow-up test. Regardless, it’s a step in the right direction.

Capitalizing on Competitors’ Conversion Challenges

Meanwhile, Blockbuster missed a huge opportunity. Netflix’s coupon box mess was a huge opportunity for Blockbuster — if they were sharp enough to notice this competitive advantage — to woo customers, and likely keep them for years.

One possibility for Blockbuster would’ve been to use its “employee discount” leek as mentioned at HackingNetflix.com. To capitalize on its competitor’s conversion problems, they only needed to purchase PPC ads for “Netflix coupon,” where they could’ve offered Netflix customers a Blockbuster coupon on a customized landing page. As of today, only five ads currently appear on Google for that search term.

Moral of the story: Follow your competitors. Look for their conversion mishaps, and capitalize on them.

Reading Future Now’s GrokDotCom won’t hurt, either ;)

Before:

Netflix_Coupon_Box_Before.jpg

After:

Netflix_Removes_Coupon_Box_After.jpg

P.S. — Blockbuster (BBI), are you paying attention?

P.P.S. — Got a coupon code for me, Netflix? ;)

Add Your Comments

Comments (7)

  1. It’s back again this morning when I view their home page.

  2. Benry,

    Netflix will likely test the coupon box by exposing part of their traffic to a page with the box and a part of their traffic to a page without the box to see which variation is working better.

    If Netflix expects to get meaningful results as to the truth behind the coupon box, they should test much more than two variations.

    Thank you for the observation Benry.

  3. They both have somebody doing PPC. Just how well… makes you wonder.

    [netflix promotion code]
    [netflix coupon]
    [blockbuster promotion code]
    [blockbuster coupon]

  4. Rob,

    If Blockbuster were to do a really good job with their PPC and management of competitive intelligence, they would have ads appearing for the search term “Netflix coupon” to capture the visitors who are bouncing off of the Netflix homepage looking for a coupon to put in their coupon box which they had front and center.

  5. Ron-
    You are absolutely correct. What you might have missed was my tongue-in-cheek, Google KW “hints” ;-)

  6. Rob,
    Thank you for really ‘spelling it out’ for them.

  7. I am very for comment but i like article very much.

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